While the big shiny turd in the punchbowl today is healthcare, let us not forget other things going on. To that end, something came across today while I was driving.
http://www.npr.org/2017/05/04/526830627/republicans-scrap-rule-for-small-business-retirement-plans
Short version? President Obama crafted a policy guideline to clarify the legal range of options for states to create state wide retirement plan management for small businesses. Basically privately managed retirement funds that are provided at zero cost to small businesses. By doing so the intent, and effect was, small businesses that could not afford to create employee retirement plans would be able to enroll with the state footing the cost of establishing and managing the fund. This would allow employees to benefit from pre tax deductions for retirement, and increase the number of persons who have private retirement savings.
Sounds like the kind of dream plan for Republicans, no? State based management, with the fed merely delegating what can be done to the states, privately managed private public partnership, very business friendly in that it reduces the cost of doing business, and pushes people towards retirement savings, and therefore less dependent on government services. It’s like Paul Ryan’s wet dream made manifest.
They killed it yesterday.
Why, you may ask? There was some mealy mouthed excuses from various sources, but I found this telling
Lisa Bleier is a managing director and associate general counsel with the Securities Industry and Financial Markets Association, or SIFMA. She says, “Every state is coming up with all different ideas as to how they’re going to do it.” Bleier says that will create problems. SIFMA has other objections, too. And some in the industry think the government just shouldn’t get involved.
Oh no, having each state operate differently could be confusing! Surely they want a federal solution then?
Dennis Kelleher is president and CEO of the financial watchdog group Better Markets. He says there’s another reason for the industry’s opposition: If states set up plans that are relatively low-cost for workers, that might push the whole market in that direction and hurt financial firms’ profits.
“It’s all about protecting profits and that’s all this fight was really about,” Kelleher says.
Oh, right. By having the more efficient large managed fund, they won’t be able to charge exorbitant rates to each company separately, so Wall Street firms could see a dip in profits. So they cried to their pet politicians, dabbing the tears with wads of campaign cash I’m sure, and the Republicans graciously agreed to help out the poor put upon Wall Street firms.
That got a bit angrier than I anticipated…